.svg)
Contractor
What is a Contractor?
A contractor in the construction industry is a professional who is tasked with the responsibility of managing and executing construction projects. This could be anything from building houses to constructing bridges. They are often employed by construction companies but can also work independently. Contractors coordinate all the services required for a construction project, such as acquiring necessary permits, hiring specialised subcontractors, sourcing materials and equipment, and ensuring safety protocols are adhered to. Their role is crucial in ensuring the project is completed within the stipulated timeline, budget, and conforms to building codes and plans. They act as the main point of contact for clients, architects, and builders involved in the project, ensuring smooth communication and resolving any issues that arise. Therefore, a contractor plays a key role in the successful completion of any construction project.
Trusted by trade contractors across the country
Other construction terms
What is a Bond Claim?
A bond claim in the construction industry, also known as a construction bond claim, is a demand for payment by a subcontractor, supplier, or laborer who has not received due compensation for completed work on a construction project. This is often linked to a surety bond, which is a type of construction bond that works to ensure that subcontractors and suppliers get paid. This claim aims to reduce financial risks, securing parties involved against potential contract defaults or failures. For example, if a general contractor fails to pay a subcontractor for their provided services, the subcontractor can file a bond claim against the contractor's surety bond to recover their funds. It is a legal recourse that assures fair payment and ethical business practices within construction projects.
What are Back Charges?
Back Charges are bills sent to subcontractors or vendors for unforeseen work that a general contractor or project manager had to complete on their behalf within the construction industry. This generally occurs when the subcontractor or vendor fails to complete their work scope to the specified standards, misses deadlines, or omits parts of their contracted responsibilities, and someone else must step in to rectify the issue. Therefore, the party who had to complete or redo the work sends 'back charges' to the original contractor, expecting reimbursement for labor, services, materials, or other costs involved in the completion of the task. They serve as a form of financial protection for the companies against contractual breaches in the construction projects.
What are Financial Statements?
Financial Statements, in the context of the construction industry, are formal records that portray the financial activities and conditions of a construction company. They're crucial for presenting a company's financial health to stakeholders and assisting in making strategic decisions. The primary types include balance sheets, income statements, cash flow statements, and equity statements. The balance sheet gives an overview of the company's assets, liabilities, and shareholders' equity. The income statement shows revenue and expenses, revealing the profit or loss over a period. Cash flow statements illustrate how changes in balance sheet and income statement items affect cash and cash equivalents. Equity statement depicts changes in the owner's interest in company during the accounting period. Without these statements, it would be challenging to understand a construction firm's economic status and make informed future financial decisions.
Ready to end the fire drill and get paid faster?
